ZymeTx Reports Financial Results for the Second Quarter Ended December 31, 1998.OKLAHOMA CITY--(BW HealthWire)--Feb. 2, 1999--ZymeTx, Inc. (Nasdaq: ZMTX), a viral disease management company, today reported financial results for the second quarter ended December 31, 1998. For the second quarter of fiscal 1999 the Company reported a net loss of $1,981,000 compared to a net loss in the second quarter of fiscal 1998 of $1,172,000. Net loss applicable to common stock was $.30 per basic and diluted share for the second quarter of fiscal 1999 compared to a net loss of $1.52 per basic and diluted share for the second quarter of fiscal 1998. The net loss for the second quarter of fiscal 1998 included a one-time preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend of $5,684,000, or $1.26 per basic and diluted share. Gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. during the quarter totaled $262,000, representing ZstatFlu(TM) orders in advance of the flu season
Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. totaled $2,303,000 for the second quarter of fiscal 1999 compared with $1,387,000 for the second quarter of fiscal 1998, primarily reflecting increased sales and marketing expenses related to the ZstatFlu point-of-care influenza test, as well as research and product development expenses for the Company's therapeutic and diagnostic programs. As of December 31, 1998, ZymeTx had cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has totaling $12,754,000. "ZymeTx fulfilled several key objectives during the recent period," said Peter G. Livingston, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ZymeTx. "As a result of our marketing and educational programs, an increasing number of health care sites in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and internationally are incorporating ZstatFlu into their protocols for influenza management. In addition, our National Flu Surveillance Network(TM) (NFSN NFSN National Financial Services Network ), launched in December, is growing rapidly, providing the first real-time resource for identifying and monitoring influenza outbreaks. The NFSN is also increasingly enabling ZymeTx to identify flu epicenters by zip code zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. and establish a database of innovators in influenza management, two potentially valuable resources for other clinical development programs." ZstatFlu is the primary mechanism the NSFN NSFN National Science Foundation Network (usually seen as NSFNet) uses for data collection. Other progress related to ZstatFlu includes Canadian regulatory approval and the development of a prototype for an over-the-counter version of the ZstatFlu test. In addition, ZymeTx submitted two 510(k) filings to the U.S. Food and Drug Administration for laboratory tests based on our proprietary ViraSTAT(R) platform that are able to distinguish between influenza A influenza A n. Influenza caused by infection with a strain of influenza virus type A. influenza A Infectious disease An avian virus, especially of ducks–which in China live near the pig reservoir and 'vector'; and B. The Company finalized a distribution agreement with Fisher Scientific for its laboratory-based diagnostic tests. "As we continue our efforts to form a new approach to influenza management based on ZstatFlu," concluded Livingston, "we are also pursuing a range of other promising opportunities to provide new solutions for the management of viral disease, both with our diagnostic products and our therapeutic programs for influenza, RSV RSV respiratory syncytial virus; Rous sarcoma virus. RSV abbr. respiratory syncytial virus RSV 1 Respiratory syncytial virus, see there 2 Rous sarcoma virus, see there , HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. and herpes simplex virus Herpes simplex virus A virus that can cause fever and blistering on the skin, mucous membranes, or genitalia. Mentioned in: Conjunctivitis herpes simplex virus ." About the Company ZymeTx, Inc. is an emerging biotechnology company engaged in the development of unique products for the diagnosis and treatment of viral diseases including influenza, HIV and herpes simplex virus. Based in Oklahoma City, ZymeTx continues to benefit from the research support of the Oklahoma Medical Research Foundation The Oklahoma Medical Research Foundation (OMRF), located in Oklahoma City, Oklahoma, is an independent, nonprofit biomedical research institute. Established in 1946, OMRF is dedicated to understanding and developing more effective treatments for human disease. Stephen M. , a leading non-profit biomedical research facility. ZstatFlu, ViraSTAT, and National Flu Surveillance Network are trademarks of ZymeTx, Inc. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Statements in this news release that are not strictly historical, including statements as to plans, objectives and future financial performance, are "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although ZymeTx believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that the expectations will prove to be correct. Factors that could cause actual results to differ materially from ZymeTx's expectations include, among others, competition within the viral disease detection and treatment industry; the Company's access to and the market's acceptance of new products; the Company's ability to market therapeutic products; the Company's ability to establish and/or expand contractual relationships with managed care organizations; the effects of economic conditions and government regulation on the healthcare market and on reimbursement policies; as well as the risks, uncertainties and other factors described from time to time in the Company's periodic filings on Forms 10-Q and 10-K on file with the Securities and Exchange Commission. -0-
ZymeTx, Inc.
(A Development Stage Company)
Condensed Financial Information
Statements of Operations
(Unaudited) (Unaudited)
Three Months ended Six Months ended
December 31, December 31,
1997 1998 1997 1998
Revenues:
Sales $ 5,807 $ 261,989 $ 7,837 $ 266,739
Allowance for
Returns - $ (118,366) - $ (118,366)
Total Revenues 5,807 143,623 7,837 148,373
Expenses:
Research and
development 202,330 332,333 430,633 611,070
Product
development 541,489 216,212 698,324 379,767
Cost of
Sales 985 94,398 1,160 94,547
Sales and
marketing 292,937 1,153,055 424,478 1,892,611
General and
administrative 349,232 506,770 550,992 978,338
Total expenses 1,386,973 2,302,768 2,105,587 3,956,333
Loss from
operations (1,381,166) (2,159,145) (2,097,750) (3,807,960)
Interest
expense (14,201) (16,507) (27,716) (32,627)
Interest
income 223,780 194,177 278,626 439,867
Net loss (1,171,587) (1,981,475) (1,846,840) (3,400,720)
Preferred
stock dividends 5,685,316 - 5,687,660 -
Net loss
applicable to
common stock $ (6,856,903)$ (1,981,475)$ (7,534,500)$(3,400,720)
Basic and
diluted net
loss per share (1.52) (0.30) (2.77) (0.51)
Shares used in
per share
calculation 4,513,716 6,655,380 2,716,642 6,646,130
Condensed Balance Sheets
June 30, December 31,
1998 1998
Cash, cash equivalents
and short term
investments $18,522,484 $ 12,753,677
Inventory 2,307,544 4,262,777
Total assets 21,685,790 18,219,721
Total liabilities 1,472,204 1,390,926
Stockholders' equity 20,213,586 16,828,795
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